Bitcoin ETFs saw $278M in outflows on June 5 amid Trump-Musk fallout and rising investor fear.
Ether ETFs recorded 14 straight days of inflows, with $11.3M added on June 5 despite market volatility.
BlackRock bought $50M in Ether, signaling growing institutional confidence in ETH over BTC.
Bitcoin exchange-traded funds in the United States faced significant outflows, totaling $278 million on June 5. The losses followed a short-lived recovery earlier in the week. Market watchers attribute the sharp reversal to growing concerns over a public fallout between President Donald Trump and Elon Musk.
Trump-Musk Rift Sparks Sell-Off Across Crypto and Stocks
The conflict between the two high-profile figures has rattled investor confidence, shifting the broader market sentiment from greed to fear. The Cryptocurrency Fear and Greed Index reflected this change on June 6. The index fell into the fear zone after remaining in positive territory for over a month.
The negative sentiment extended beyond crypto markets. Tesla shares dropped by 14% while Trump Media stock lost 8%, as per TradingView. According to SoSoValue data, the ARK 21Shares Bitcoin ETF recorded the highest outflows on June 5, with $102 million exiting the fund. None of the major spot Bitcoin ETFs in the U.S. reported any inflows that day.
ETF Redemptions Continue After Brief Recovery
The $278 million in outflows followed a period of heavy redemptions between May 29 and June 2, when Bitcoin ETFs lost $1.2 billion across three sessions. Although there was a short recovery from June 3 to 4, the renewed political drama brought pressure back on digital assets.
Global Bitcoin exchange-traded products also reflected this downtrend, recording $8 million in outflows during the last week. The broader risk sentiment, already weakened by economic uncertainty, turned more fragile amid the escalating Trump-Musk feud.
Meanwhile, Ether ETFs bucked the trend, continuing a positive streak of inflows. Ether exchange-traded products have seen growing investor interest backed by stronger network fundamentals and resilient futures performance.
Ether ETFs Record 14 Straight Days of Inflows
Despite pressure on Bitcoin-linked funds, U.S. spot Ether ETFs posted $11.3 million in inflows on June 5. This marked the fourteenth consecutive day of net positive flows for Ether-based funds. Although inflows slowed from previous days, investors remain focused on Ether’s network strength and long-term prospects.
On June 3, Ether ETFs saw a notable $109.4 million in inflows, followed by $56.9 million the next day. Institutional interest also appears to be building. According to Arkham data, BlackRock purchased $50 million worth of Ether earlier this week.
This trend suggests that despite the turbulence in Bitcoin markets, investor confidence in Ether remains relatively stable. Additionally, the contrast in flows between the two largest cryptocurrencies reflects a shifting dynamic in market preferences.
